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New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared a slew of infrastructure projects including 12 new industrial nodes or cities and three rail projects connecting key industrial locations with a total investment of around ₹35,000 crore.
In addition, the Cabinet approved provision of Central Financial Assistance (CFA) to state governments in the north-east region towards their equity participation for development of hydro-electric projects while expanding the Central sector scheme of financing the under ‘Agriculture Infrastructure Fund’ to help raise farmers' incomes.
It also approved a proposal for the 3rd batch of e-auctions under the Private FM Radio Phase Ill Policy. These auctions will be for 730 channels in 234 new cities with estimated reserve price of ₹784.87 crore.
The Cabinet in last three months has approved infrastructure projects worth over ₹2 trillion and Wednesday's decision adds to government's focus on building manufacturing and strengthening infrastructure to take India closer to its goal of Viksit Bharat by 2047, information and broadcasting minister Ashwini Vaishnaw said.
He said the new smart industrial cities would be an extension of existing industrial corridors, giving a boost to manufacturing while attracting investments of over ₹1.5 trillion and creating one million direct jobs. The total central investment in the projects is estimated at ₹28,602 crore.
“Aligning with the vision of Viksit Bharat, these projects will cement India's role in global value chains with ready-to-allot land for investors. The projects have been identified in a way that it would create a grand necklace of industrial smart cities on the backbone of the Golden Quadrilateral,” Vaishnaw said.
Spanning 10 states and strategically planned along six major corridors, these new industrial clusters are expected to transform the industrial landscape of the country, creating a network of industrial nodes and cities that will significantly boost economic growth and global competitiveness.
The approved projects will also improve logistical efficiency by connecting unconnected areas, increase existing line capacity and enhancing transportation networks, resulting in streamlined supply chains and accelerated economic growth.
The new industrial cities will be developed as greenfield smart cities of global standard, built "ahead of demand" on 'plug-n-play' and 'walk-to-work' concepts. This approach ensures that the cities are equipped with advanced infrastructure that supports sustainable and efficient industrial operations.
These industrial areas will be located in Khurpia (Uttarakhand), Rajpura-Patiala (Punjab), Dighi (Maharashtra), Palakkad (Kerela), Agra and Prayagraj (UP), Gaya (Bihar), Zaheerabad (Telangana), Orvakal and Kopparthy (AP) and Jodhpur-Pali (Rajasthan), a government statement said. These cities would cover a host of activity, including food and agro processing, information technology, telecommunications, garnets, textile, engineering, fabrication, and pharma equipment, with a focus on sectors that already have linkages around the proposed industrial clusters.
The proposal for providing Central Financial Assistance to the state governments in the North Eastern Region will go towards their equity participation for developing hydro-electric projects through joint ventures between state entities and central public sector undertakings. This scheme has an outlay of ₹4,136 crore to be implemented from FY 2024-25 to FY 2031-32. A cumulative hydro capacity of about 15,000 MW would be supported under the scheme.
Apart from e-auctions under the Private FM Radio Phase Ill Policy, it also approved a proposal to charge Annual License Fees (ALF) from FM channels as 4% of Gross Revenue excluding Goods and Services Tax (GST).
This will be applicable for 234 new cities and towns.
The Private FM Radio rollout in 234 new cities and towns will fulfil an unmet demand.
It will lead to creation of new employment opportunities, boost to local dialect and culture and ‘vocal for local’ initiatives, Vaishnaw added.
Many of the approved cities / towns are in aspirational districts and left wing extremism affected areas. Setting up of Private FM Radio in these areas will further strengthen government outreach, the government statement said.
Union cabinet approval for expansion of financing facility under ‘Agriculture Infrastructure Fund’ is continuation of government’s initiative to raise farmers income by aiding them in adding further value to their products. The initiative aim at expanding the scope of eligible projects and integrate additional supportive measures to foster a robust agricultural infrastructure ecosystem. It will now fund all eligible beneficiaries for creation of infrastructure covered under 'viable projects for building community farming assets. Primary secondary processing projects had now been included in list of eligible activities under AIF. Also, it will allow convergence of Component-A of PM-KUSUM with AIF for farmer/group of farmers/ Farmer Producer Organizations/ Cooperatives/ Panchayats. The alignment of these initiatives aims to promote sustainable clean energy solutions alongside the development of agricultural infrastructure.
Since its launch by the Prime Minister in 2020, AIF has been instrumental in supporting creation of 6623 warehouses, 688 cold stores and 21 silos projects, resulting in additional storage capacity. About ₹47,575 Crore has been sanctioned for 74,508 projects under AIF till date. These sanctioned projects have mobilized an investment of ₹78,596 Crore in agriculture sector, out of which ₹78,433 Crore has been mobilised from private entities. In addition, infrastructure projects sanctioned under AIF have helped in generating more than 8.19 Lakh rural employment opportunities in the agriculture sector, the government statement said.
Prime Minister Narendra Modi wrote on X: “The decision by the Cabinet on the expansion of Central Sector Scheme of Agriculture Infrastructure Fund is yet another example of the importance attached to agriculture and farmer welfare. This decision will ensure a boost of incomes for farmers and encourage sustainability.”
“The Cabinet has taken a very important decision of building 12 Industrial nodes/cities under National Industrial Corridor Development Programme. Apart from the significant infrastructure boost, it will enhance growth and create employment for many people.”
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